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Toronto-based crypto lender Voyager Digital on late Tuesday filed for bankruptcy and is thereby the second high-profile crypto firm to do so amidst market consolidation.
Voyager filed for Chapter 11 bankruptcy protections Tuesday in the Southern District of New York, noting it had more than 100,000 creditors and roughly between $1 and $10 billion in assets and liabilities.
According to the filing “funds will be available for distribution to unsecured creditors.”
Voyager joins Three Arrows Capital in its actions filing for bankruptcy. Three Arrows, though, filed a Chapter 15 petition tied to an ongoing liquidation effort mandated by a court in the British Virgin Islands.
Voyager CEO, Steven Ehrlich said on Twitter:
“Customers with crypto in their account(s) will receive in exchange a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens.”
Lenders have been facing solvency issues in recent weeks, a trend kicked off by Celsius last month when it announced the suspension of withdrawals.
Alameda Research, a quant trading shop backed by Bankman-Fried, recently issued a line of credit to troubled crypto broker Voyager Digital (VOYG) for $200 million in cash/USDC and 15,000 Bitcoin.